I want to review all the income trust stocks touted in the Money Show. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. This is one of the stocks (TSX- NWF.UN). This stock currently has a yield just over 7%.
Most of the growth figures I track are good for this stock. As in most income trust stocks, the Book Value growth is not great, but at least it has some Book Value growth. The growth in dividends for stock has been quite good in the past with a 5 year average growth per year of almost 20%. However, since this is an Income Trust, the company will convert to a corporation after 2011 and then the distributions, which will then be dividends, will be reduced. The reduction will probably in the 20% to 25% range.
For this stock, things like revenue, cash flow, earnings and stock price are growing nicely. When you look at cash flow, it does not at appear at first that they are growing nice because the 5 and 10 year comparisons are to unusually high cash flow years. You can better see the nice growth looking at the 5 year running averages in cash flow per share. The other nice thing about this stock is that, whenever than can, the company distributes extra dividend payments.
When you look at the Liquidity Ratio and the Asset/Liability Ratio, you will find that both of these are very good. What you would like to see is both these ratios at 1.50 or better and in this case, they are both much better than this. For this stock, these ratios are often around 2.00 or better.
This stock has done very well by its shareholders over the last 5 and 10 years. Although, you cannot use past results to determine future results, it would seem that this is a good stock for income and growth. The negative I see on this is that recently the Accrual Ratio has been high. Prior to the financial year ending January 2008, it had been relatively low. Tomorrow, I will look at what the analysts say about this stock. This is one of the Income Trust talked about at the Money Show I could get excited about.
The North West Company is a leading retailer of food and everyday products and services to rural communities and urban neighborhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 225 stores under the trading names Northern, NorthMart, Giant Tiger, AC Value Center, and Cost-U-Less. Its web site is www.northwest.ca. See my spreadsheet at www.spbrunner.com/stocks/nwf.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Monday, November 23, 2009
Friday, November 20, 2009
Canadian Utilities 2
I am continuing my review this stock (TSX- CU) today as I received the December 2008 annual report and I have not reviewed it since I received this report. I do not own this stock, but I follow it. They are on the dividend lists that I follow. For links to these dividend lists, see yesterday’s blog.
When I look at Insider Selling and Insider Buying reports, the thing I notice is that the CFO and CEO have more options that stock. For the Officers and Directors, the number of options and shares are close. Over the past year, there has been almost 4M of Insider Selling. Most of this occurred in the first part of this year, and most of this selling was done by Directors. However, there was not just one person selling, but a number of people selling.
When you look at Insider Selling, it is hard to know whether or not it is pointing to a lack of confidence in the company or not. We were in a recession in the first part of this year. The thing that points to the company having confidence is that they increased their dividends this year by 6%.
When I look at the P/E, I find that the 5 year low was 12.6 and the 5 year high was 17.5. The P/E for the expected earnings this year is 14.3. The P/E on sites that look at it from a last 12 months earning’s point of view is just over 11. So the P/E for this stock is relatively low. When looking at the yield, I find that the current one is 3.3% and the 5 year average is 3%. So this yield is slightly better than the 5 year average. The Price/Book Value at 1.79 is just less than 90% of the 10 year average of 2.05. The last thing to look at is the Graham Price. The current price is just 6% higher than the Graham Price. All these items point to a good, but not great, current stock price.
Globe investor gives this stock a 3 star rating. When I look at analysts’ recommendations, I find a Strong Buy and Buy and Hold recommendations. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.)
This is a good utilities stock and it should provide good solid returns over the long term. I follow this stock, as it is on the dividend list that I follow. I have no intentions of buying it, as I am happy with the utilities stocks I currently own.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. ATCO owns 74% of this company. CU.X is voting and Class B, CU is non-voting and Class A. Its web site is www.canadian-utilities.com. See my spreadsheet at www.spbrunner.com/stocks/cu.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
When I look at Insider Selling and Insider Buying reports, the thing I notice is that the CFO and CEO have more options that stock. For the Officers and Directors, the number of options and shares are close. Over the past year, there has been almost 4M of Insider Selling. Most of this occurred in the first part of this year, and most of this selling was done by Directors. However, there was not just one person selling, but a number of people selling.
When you look at Insider Selling, it is hard to know whether or not it is pointing to a lack of confidence in the company or not. We were in a recession in the first part of this year. The thing that points to the company having confidence is that they increased their dividends this year by 6%.
When I look at the P/E, I find that the 5 year low was 12.6 and the 5 year high was 17.5. The P/E for the expected earnings this year is 14.3. The P/E on sites that look at it from a last 12 months earning’s point of view is just over 11. So the P/E for this stock is relatively low. When looking at the yield, I find that the current one is 3.3% and the 5 year average is 3%. So this yield is slightly better than the 5 year average. The Price/Book Value at 1.79 is just less than 90% of the 10 year average of 2.05. The last thing to look at is the Graham Price. The current price is just 6% higher than the Graham Price. All these items point to a good, but not great, current stock price.
Globe investor gives this stock a 3 star rating. When I look at analysts’ recommendations, I find a Strong Buy and Buy and Hold recommendations. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.)
This is a good utilities stock and it should provide good solid returns over the long term. I follow this stock, as it is on the dividend list that I follow. I have no intentions of buying it, as I am happy with the utilities stocks I currently own.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. ATCO owns 74% of this company. CU.X is voting and Class B, CU is non-voting and Class A. Its web site is www.canadian-utilities.com. See my spreadsheet at www.spbrunner.com/stocks/cu.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Thursday, November 19, 2009
Canadian Utilities
I am reviewing this stock (TSX- CU) today as I received the December 2008 annual report and I have not reviewed it since I received this report. I do not own this stock, but I follow it. They are on the dividend lists that I follow of Dividend Achievers at www.indxis.com/DividendAchievers.html and Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices).
In looking at growth figures, this stock is still falling behind in revenue growth. I looked at and updated my spreadsheet for the third quarter of 2009 and revenue is lower on a 3 month and 9 month basis from one year ago. When you look at earnings and cash flow, the growth figures are better. The earnings have slipped in this recession, but the cash flow is not expected to. The Book Value goes up by modest amounts.
The one good growth is in dividends, which grow faster than inflation. The dividends have grown at just over and just under 5% for the last 5 and 10 years. They were increased this year by 6%. I know some growth dividend paying stock do better, but this is still very solid growth in dividends.
When you look at the Liquidity Ratio, this is very good. The current balance sheet has a Liquidity Ratio of over 3.00. Anything at or over 1.50 is good. The Asset/Liability Ratio however, is not quite as good. This ratio is current ratio at 1.49. The five year average is better at 1.51. You would like to see this ratio at 1.50 or better. So the current one is a little low, but it is not seriously low.
When I look at this company, what I do not like is lack of revenue growth and a high Accrual Ratio. The Accrual Ratio for the end of 2008 was 5.5% and now it is even higher at just over 6%. However, this company has provided its shareholders with solid stock growth and solid dividend growth. The 5 and 10 year total growth for this company is 8.8% and 10.5%. This is solid growth for a utilities company.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. ATCO owns 74% of this company. CU.X is voting and Class B, CU is non-voting and Class A. Its web site is www.canadian-utilities.com. See my spreadsheet at www.spbrunner.com/stocks/cu.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
In looking at growth figures, this stock is still falling behind in revenue growth. I looked at and updated my spreadsheet for the third quarter of 2009 and revenue is lower on a 3 month and 9 month basis from one year ago. When you look at earnings and cash flow, the growth figures are better. The earnings have slipped in this recession, but the cash flow is not expected to. The Book Value goes up by modest amounts.
The one good growth is in dividends, which grow faster than inflation. The dividends have grown at just over and just under 5% for the last 5 and 10 years. They were increased this year by 6%. I know some growth dividend paying stock do better, but this is still very solid growth in dividends.
When you look at the Liquidity Ratio, this is very good. The current balance sheet has a Liquidity Ratio of over 3.00. Anything at or over 1.50 is good. The Asset/Liability Ratio however, is not quite as good. This ratio is current ratio at 1.49. The five year average is better at 1.51. You would like to see this ratio at 1.50 or better. So the current one is a little low, but it is not seriously low.
When I look at this company, what I do not like is lack of revenue growth and a high Accrual Ratio. The Accrual Ratio for the end of 2008 was 5.5% and now it is even higher at just over 6%. However, this company has provided its shareholders with solid stock growth and solid dividend growth. The 5 and 10 year total growth for this company is 8.8% and 10.5%. This is solid growth for a utilities company.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. ATCO owns 74% of this company. CU.X is voting and Class B, CU is non-voting and Class A. Its web site is www.canadian-utilities.com. See my spreadsheet at www.spbrunner.com/stocks/cu.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Wednesday, November 18, 2009
DirectCash Income Fund 2
I want to review stocks touted in the Money Show. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. This is one of the stocks (TSX- DCI.UN). This stock currently has a yield of 9.3%. I am continuing my review of this stock from yesterday.
When I look at Insider Selling and Insider Buying reports, the first thing I notice is that the Gallacher family owns more than 40% of the shares of this company. A Jeffery Smith owns some 20%, but most of his shares are listed as special voting. The other thing I notice is that the CFO, some officers and some directors are buying shares in this company. A lot of this buying occurred in the early part of this year when the stock price was below $10.
When you look at spreadsheet ratios, I find that the P/E in the past has been so high as to be meaningless for a comparison with the current one. For example, the 4 year low average is 116. The estimated P/E for 2009 is 17. This is rather high. The reason it has come so low is because of the increase in earnings. In the last 12 months, this company has earnings of $.87. This is more than a 400% increase from last year’s of $16.
The yield on this stock is 9.2% compared to a 4 year average of 9.9%. The Graham Price on this stock, considering the last 12 month earnings and book value at June 2009, is $9.69. The current stock price is more than 55% above this. Also, the Price/Book Value at 3.14 is 160% above the 4 year average of 1.88. None of these ratios point to a good current price.
Globe investor gives this stock a 4 star rating. When I look at analysts recommendations, I find a Strong Buy recommendation and a Buy recommendation. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.) I gather that this stock is liked because of its strong and recurring revenue stream.
This is an income trust that must change to a corporation by 2011. I have found nothing to say what they will do. However, the distribution is expected to remain at $1.38 for 2009 and 2010. The price on this stock has risen sharply lately and I wonder if it is now too high. The other thing I do not like is the lack of growth in the Book Value. In fact, Book Value has been declining at a rate of 9% per year. It has already declined almost 5% this year, so this erosion of Book Value does not appear to be coming to an end. I will track this stock for a few years and see where it goes.
DirectCash is the leading provider of ATMs, debit terminals, prepaid phone cards and prepaid cash cards in Canada. They have built a substantial technological, sales and service infrastructure that enables them to offer convenient and secure revenue streams for businesses across the country. DirectCash operates in Canada, the United States and Mexico. Its web site is www.directcash.net. See my spreadsheet at www.spbrunner.com/stocks/dci.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
When I look at Insider Selling and Insider Buying reports, the first thing I notice is that the Gallacher family owns more than 40% of the shares of this company. A Jeffery Smith owns some 20%, but most of his shares are listed as special voting. The other thing I notice is that the CFO, some officers and some directors are buying shares in this company. A lot of this buying occurred in the early part of this year when the stock price was below $10.
When you look at spreadsheet ratios, I find that the P/E in the past has been so high as to be meaningless for a comparison with the current one. For example, the 4 year low average is 116. The estimated P/E for 2009 is 17. This is rather high. The reason it has come so low is because of the increase in earnings. In the last 12 months, this company has earnings of $.87. This is more than a 400% increase from last year’s of $16.
The yield on this stock is 9.2% compared to a 4 year average of 9.9%. The Graham Price on this stock, considering the last 12 month earnings and book value at June 2009, is $9.69. The current stock price is more than 55% above this. Also, the Price/Book Value at 3.14 is 160% above the 4 year average of 1.88. None of these ratios point to a good current price.
Globe investor gives this stock a 4 star rating. When I look at analysts recommendations, I find a Strong Buy recommendation and a Buy recommendation. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.) I gather that this stock is liked because of its strong and recurring revenue stream.
This is an income trust that must change to a corporation by 2011. I have found nothing to say what they will do. However, the distribution is expected to remain at $1.38 for 2009 and 2010. The price on this stock has risen sharply lately and I wonder if it is now too high. The other thing I do not like is the lack of growth in the Book Value. In fact, Book Value has been declining at a rate of 9% per year. It has already declined almost 5% this year, so this erosion of Book Value does not appear to be coming to an end. I will track this stock for a few years and see where it goes.
DirectCash is the leading provider of ATMs, debit terminals, prepaid phone cards and prepaid cash cards in Canada. They have built a substantial technological, sales and service infrastructure that enables them to offer convenient and secure revenue streams for businesses across the country. DirectCash operates in Canada, the United States and Mexico. Its web site is www.directcash.net. See my spreadsheet at www.spbrunner.com/stocks/dci.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Tuesday, November 17, 2009
DirectCash Income Fund
I want to review stocks touted in the Money Show. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. This is one of the stocks (TSX- DCI.UN). This stock currently has a yield of 9.3%. I have not bought this stock.
Most of the growth figures I track are good for this stock. However, one I thing that I believe is important is a growing Book Value and this stock Book Value has not grown. The Book Value per share has gone down just under 10% per year over the last 4 years. When you look at the growth in stock price to November 2009, I find it has grown only just under 2% per year. The growth in Total Returns, however, has grown to November 2009 by almost 10% per year. This is because the distributions are good, but there has been little growth in the stock price. If you look at the growth in stock price and Total Returns to the end of 2008, both these figures are negative.
For this stock, things like revenue, cash flow and earnings are growing nicely. The distributions are also growing at rate of just over 8% per year. However, the last time the distributions were increase was in 2007. The thing to remark on distributions is that for 2009, a special dividend of $.12 per share has been declared.
When you look at the Liquidity Ratio, it is low. This ratio has a 4 year average of only 0.69 and a current ratio of only 0.65. I like this ratio to be at least 1.50. When the ratio is less than 1.00, it means that current assets cannot cover current liabilities. The Asset/Liability Ratio however, is quite good and the current ratio is at 2.02. The 4 year average is 2.63.
I had taken a look at this stock, as it was one of the income trusts recommended at the money show. The good thing about this stock is that the Accrual Ratio has always been negative. It is also currently below a negative 5%” and this is also good. However, I do not like stocks that cannot grow their Book Value. Personally, I have no plans to buy this stock, but I will track it for a while.
DirectCash is the leading provider of ATMs, debit terminals, prepaid phone cards and prepaid cash cards in Canada. They have built a substantial technological, sales and service infrastructure that enables them to offer convenient and secure revenue streams for businesses across the country. DirectCash operates in Canada, the United States and Mexico. Its web site is www.directcash.net. See my spreadsheet at www.spbrunner.com/stocks/dci.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Most of the growth figures I track are good for this stock. However, one I thing that I believe is important is a growing Book Value and this stock Book Value has not grown. The Book Value per share has gone down just under 10% per year over the last 4 years. When you look at the growth in stock price to November 2009, I find it has grown only just under 2% per year. The growth in Total Returns, however, has grown to November 2009 by almost 10% per year. This is because the distributions are good, but there has been little growth in the stock price. If you look at the growth in stock price and Total Returns to the end of 2008, both these figures are negative.
For this stock, things like revenue, cash flow and earnings are growing nicely. The distributions are also growing at rate of just over 8% per year. However, the last time the distributions were increase was in 2007. The thing to remark on distributions is that for 2009, a special dividend of $.12 per share has been declared.
When you look at the Liquidity Ratio, it is low. This ratio has a 4 year average of only 0.69 and a current ratio of only 0.65. I like this ratio to be at least 1.50. When the ratio is less than 1.00, it means that current assets cannot cover current liabilities. The Asset/Liability Ratio however, is quite good and the current ratio is at 2.02. The 4 year average is 2.63.
I had taken a look at this stock, as it was one of the income trusts recommended at the money show. The good thing about this stock is that the Accrual Ratio has always been negative. It is also currently below a negative 5%” and this is also good. However, I do not like stocks that cannot grow their Book Value. Personally, I have no plans to buy this stock, but I will track it for a while.
DirectCash is the leading provider of ATMs, debit terminals, prepaid phone cards and prepaid cash cards in Canada. They have built a substantial technological, sales and service infrastructure that enables them to offer convenient and secure revenue streams for businesses across the country. DirectCash operates in Canada, the United States and Mexico. Its web site is www.directcash.net. See my spreadsheet at www.spbrunner.com/stocks/dci.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Monday, November 16, 2009
K-Bro Linen Income Fund 2
I want to review stocks touted in the Money Show. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. This is one of the stocks (TSX- KBL.UN). I have not bought this stock. I am continuing my review of this stock from Friday.
When I look at Insider Selling and Insider Buying reports, I find that there has been a bit of Insider Buying by company officers. But this occurred in the early part of this year. There has been no activity since. So, this reporting tells us little.
When you look at spreadsheet ratios, I find that I have a P/E of 13.6, which is just below the 5 year average low of 14.6. The yield of 8.3% is a good one; however, the 5 year average is 8.8%. They have not raised their distributions over the last 4 years. If you look at the Price/Book Value ratio, the current one is higher than the last 4 years. (We do not have a long term one, as there are only financial records available for 4 years. However, the current Price/Book Value of 1.45 is not bad.) The Price/Cash Flow at 6 is low than the 4 year average of 9.
The last thing to look at is the Graham Price. Currently, the stock price is some 6% lower than the Graham price. The Graham Price is $14.10 and the current stock price is $13.19. Generally speaking, any stock price at or below the Graham price is a good one.
Globe investor gives this stock a 5 star rating. When I look at analysts recommendations, I find a Strong Buy recommendation, a couple of Buy recommendations and a couple of Hold recommendations. There are few of analysts following this stock. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.)
This is an income trust that must change to a corporation by 2011. They seem to say that there will be no effective on their distribution policies, but they do not state this categorically. They also seem to say that a change to a corporation by December 2010 may be a suitable structure for them. Bottom line is that they really have not stated their intentions. I would feel more comfortable about this fund if they had been more clear on what they intend to do. December 2010 is not that far off.
The reason for the buy type recommendations is that this company gets 75% of its revenue from large publicly funded health-care facilities. The currently recession should have little effect on the company and the company has a strong balance sheet. With an 8% return, and perhaps modest rise in stock price, you could do well by this stock. Personally, I prefer stocks that raise their dividends and this stock seems to have no current intentions of doing so. However, it does seem to be reasonably priced.
K-Bro Linen Systems Inc., the Fund’s 100% owned operating subsidiary ("K-Bro"), is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to large healthcare institutions, hotels and other commercial accounts. Its web site is www.k-brolinen.com. See my spreadsheet at www.spbrunner.com/stocks/kbl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
When I look at Insider Selling and Insider Buying reports, I find that there has been a bit of Insider Buying by company officers. But this occurred in the early part of this year. There has been no activity since. So, this reporting tells us little.
When you look at spreadsheet ratios, I find that I have a P/E of 13.6, which is just below the 5 year average low of 14.6. The yield of 8.3% is a good one; however, the 5 year average is 8.8%. They have not raised their distributions over the last 4 years. If you look at the Price/Book Value ratio, the current one is higher than the last 4 years. (We do not have a long term one, as there are only financial records available for 4 years. However, the current Price/Book Value of 1.45 is not bad.) The Price/Cash Flow at 6 is low than the 4 year average of 9.
The last thing to look at is the Graham Price. Currently, the stock price is some 6% lower than the Graham price. The Graham Price is $14.10 and the current stock price is $13.19. Generally speaking, any stock price at or below the Graham price is a good one.
Globe investor gives this stock a 5 star rating. When I look at analysts recommendations, I find a Strong Buy recommendation, a couple of Buy recommendations and a couple of Hold recommendations. There are few of analysts following this stock. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.)
This is an income trust that must change to a corporation by 2011. They seem to say that there will be no effective on their distribution policies, but they do not state this categorically. They also seem to say that a change to a corporation by December 2010 may be a suitable structure for them. Bottom line is that they really have not stated their intentions. I would feel more comfortable about this fund if they had been more clear on what they intend to do. December 2010 is not that far off.
The reason for the buy type recommendations is that this company gets 75% of its revenue from large publicly funded health-care facilities. The currently recession should have little effect on the company and the company has a strong balance sheet. With an 8% return, and perhaps modest rise in stock price, you could do well by this stock. Personally, I prefer stocks that raise their dividends and this stock seems to have no current intentions of doing so. However, it does seem to be reasonably priced.
K-Bro Linen Systems Inc., the Fund’s 100% owned operating subsidiary ("K-Bro"), is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to large healthcare institutions, hotels and other commercial accounts. Its web site is www.k-brolinen.com. See my spreadsheet at www.spbrunner.com/stocks/kbl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Friday, November 13, 2009
K-Bro Linen Income Fund
I want to review stocks touted in the Money Show. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. This is one of the stocks (TSX- KBL.UN). This stock currently has a yield of 8.3%. I have not bought this stock.
One of the problems I see with this stock is the increase in units or shares. In the annual reports, the company talks about their increase in distributions, but except for the increase in distributions between the annualized distribution of the first year and the distribution of the second year, there has been no increase in distributions per share. This is because of the increase in units.
There had been a nice increase in revenue over the last 4 years, at about 21% per year. However, if you look at revenue growth per share, this comes in rather low at 3.7% per year. The growth in book value at 2% per year is nothing to write home about either. The good growth is in Total Return and this comes in at just over 10% per year per share. The other good growth figure is the growth in Cash Flow. This comes in at just over 10% per year per shares also.
When you look at the Liquidity Ratio, it is ok, but not great, at 1.29 at the end of 2008. I would prefer it to be at 1.50. At the end of September 2009, it was much better at 1.79. However, the Asset/Liability is very good at an average of 3.02 and at September 2009 at 4.21. The next thing to talk about is the Return on Equity or ROE. The ROE has a 4 year average of 8% to the end of 2008. For September 2009, the ROE it was 9.2% and this is not bad.
This stock was hit by the recent recession, but is now back up to what it was in 2007. I will talk about what the analyst recommend tomorrow. For me, I will continue to track this stock, but I would like to see the stock perform better per share before I would buy any.
K-Bro Linen Systems Inc., the Fund’s 100% owned operating subsidiary ("K-Bro"), is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to large healthcare institutions, hotels and other commercial accounts. Its web site is www.k-brolinen.com. See my spreadsheet at www.spbrunner.com/stocks/kbl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
One of the problems I see with this stock is the increase in units or shares. In the annual reports, the company talks about their increase in distributions, but except for the increase in distributions between the annualized distribution of the first year and the distribution of the second year, there has been no increase in distributions per share. This is because of the increase in units.
There had been a nice increase in revenue over the last 4 years, at about 21% per year. However, if you look at revenue growth per share, this comes in rather low at 3.7% per year. The growth in book value at 2% per year is nothing to write home about either. The good growth is in Total Return and this comes in at just over 10% per year per share. The other good growth figure is the growth in Cash Flow. This comes in at just over 10% per year per shares also.
When you look at the Liquidity Ratio, it is ok, but not great, at 1.29 at the end of 2008. I would prefer it to be at 1.50. At the end of September 2009, it was much better at 1.79. However, the Asset/Liability is very good at an average of 3.02 and at September 2009 at 4.21. The next thing to talk about is the Return on Equity or ROE. The ROE has a 4 year average of 8% to the end of 2008. For September 2009, the ROE it was 9.2% and this is not bad.
This stock was hit by the recent recession, but is now back up to what it was in 2007. I will talk about what the analyst recommend tomorrow. For me, I will continue to track this stock, but I would like to see the stock perform better per share before I would buy any.
K-Bro Linen Systems Inc., the Fund’s 100% owned operating subsidiary ("K-Bro"), is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to large healthcare institutions, hotels and other commercial accounts. Its web site is www.k-brolinen.com. See my spreadsheet at www.spbrunner.com/stocks/kbl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Thursday, November 12, 2009
Research in Motion 2
I am continuing my review of this stock (TSX- RIM, NYSE-RIMM) today as I received the November 2008 annual report and I have not reviewed it since I received this report. This is a stock I bought for fun. It is not a dividend paying stock, which is what I usually buy. However, there is not much excitement in buying stolid dividend paying stock.
It is hard to know what to think about all the insider selling. The insider selling is because those doing it have most of their wealth tied up in this company and they want to diversify and also give to charity. James Balsillie wants to buy a sports team. A sports team must be a lot riskier than owning RIM. There seems to be divided opinions on whether or not all this selling is a negative or not. Most of this selling is set up to occur automatically, no matter what the condition of the market or the stock price is.
When you look at spreadsheet ratios, I find that I have a P/E of 15, which is not far from sites that use last 12 months earnings and they have a P/E of around 17. The 5 year low average is 25. This is a growth company, so the P/E’s tend to be on the high side. A P/E of 25 is not bad for a growth company. When looking at the Price/Book Value Ratio, I find the current Ratio is about 90% of the 10 year average. This is not bad either, but a buy signal is usually at 80% of the 10 year average.
When you look at the Price/Cash Flow Ratio, the ratio for 2010 is just under 15, and the 5 year average is 41. However, the P/CF for 2007 and 2008 was 15 and 17.7 respectively. The last thing to look at is the Graham Price. Currently, the stock price is some 92% greater than the Graham price. However, if you look at the past record, the stock price is usually 3 to 4 times the Graham price. This often happens with growth stocks.
Globe investor gives this stock a 3 star rating. When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are lots of analysts following this stock. The consensus recommendation will be a Buy. There are more Strong Buy and Buy recommendations than there are Hold recommendations. (See my site for information on analyst ratings.) Most of the analysts are unconcerned about all the Insider Selling.
At the moment, I am holding on to my stock, but I will sell them in the future, as I do not keep non-dividend paying stock for the long term.
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. Its web site is www.rim.com. See my spreadsheet at www.spbrunner.com/stocks/rim.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
It is hard to know what to think about all the insider selling. The insider selling is because those doing it have most of their wealth tied up in this company and they want to diversify and also give to charity. James Balsillie wants to buy a sports team. A sports team must be a lot riskier than owning RIM. There seems to be divided opinions on whether or not all this selling is a negative or not. Most of this selling is set up to occur automatically, no matter what the condition of the market or the stock price is.
When you look at spreadsheet ratios, I find that I have a P/E of 15, which is not far from sites that use last 12 months earnings and they have a P/E of around 17. The 5 year low average is 25. This is a growth company, so the P/E’s tend to be on the high side. A P/E of 25 is not bad for a growth company. When looking at the Price/Book Value Ratio, I find the current Ratio is about 90% of the 10 year average. This is not bad either, but a buy signal is usually at 80% of the 10 year average.
When you look at the Price/Cash Flow Ratio, the ratio for 2010 is just under 15, and the 5 year average is 41. However, the P/CF for 2007 and 2008 was 15 and 17.7 respectively. The last thing to look at is the Graham Price. Currently, the stock price is some 92% greater than the Graham price. However, if you look at the past record, the stock price is usually 3 to 4 times the Graham price. This often happens with growth stocks.
Globe investor gives this stock a 3 star rating. When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are lots of analysts following this stock. The consensus recommendation will be a Buy. There are more Strong Buy and Buy recommendations than there are Hold recommendations. (See my site for information on analyst ratings.) Most of the analysts are unconcerned about all the Insider Selling.
At the moment, I am holding on to my stock, but I will sell them in the future, as I do not keep non-dividend paying stock for the long term.
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. Its web site is www.rim.com. See my spreadsheet at www.spbrunner.com/stocks/rim.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Wednesday, November 11, 2009
Research in Motion
I am reviewing this stock (TSX- RIM, NYSE-RIMM) today as I received the November 2008 annual report and I have not reviewed it since I received this report. This is a stock I bought for fun. It is not a dividend paying stock, which is what I usually buy. However, there is not much excitement in buying stolid dividend paying stock.
I first bought this stock in December 1999. I sold some in September 2006 and November 2007. The stock I have left is still worth twice my original buy cost. According to quicken I have made a return of some 21% per year on this stock. I do not expect to hold this stock for the long term. I will sell at some point in the future. However, buying such stock can be fun, and as long as you only invest a small amount of your portfolio in such things, you will be fine. Do not invest in such stocks money you cannot afford to lose.
When you look at the growth figures on this stock, they are, of course, all great. Even the stock price growth for the last 5 years is great. The thing to point out is that this stock does a lot of its business in the US and reports in US currency. The Canadian currency is getting stronger while the US is getting weaker. The expected earnings for this company has gone up in US currency, but down in Canadian currency.
When you look at the Liquidity Ratio and the Asset/Liability Ratio, you find that both of these are high. The Liquidity at February 2009 was 2.29 and the Asset Liability Ratio at the same time was 3.64. Any ratio above 1.50 is good, so these ratios are very good.
The next thing to talk about is the Return on Equity or ROE. The ROE has been getting better and better on this stock. The 5 year average at the end of February 2009 was 27% and the current 5 year average to August 2009 is 26.2%. (The 5 year average at February 2006 was only 5%.)
Looking at revenues, earnings and cash flow, you can see that this company is making money. The one negative thing that I see is the Accrual Ratio and this is very high at 12%. Although, I must admit, this ratio has always been high. Tomorrow I will look at what the analysts say about this stock.
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. Its web site is www.rim.com. See my spreadsheet at www.spbrunner.com/stocks/rim.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
I first bought this stock in December 1999. I sold some in September 2006 and November 2007. The stock I have left is still worth twice my original buy cost. According to quicken I have made a return of some 21% per year on this stock. I do not expect to hold this stock for the long term. I will sell at some point in the future. However, buying such stock can be fun, and as long as you only invest a small amount of your portfolio in such things, you will be fine. Do not invest in such stocks money you cannot afford to lose.
When you look at the growth figures on this stock, they are, of course, all great. Even the stock price growth for the last 5 years is great. The thing to point out is that this stock does a lot of its business in the US and reports in US currency. The Canadian currency is getting stronger while the US is getting weaker. The expected earnings for this company has gone up in US currency, but down in Canadian currency.
When you look at the Liquidity Ratio and the Asset/Liability Ratio, you find that both of these are high. The Liquidity at February 2009 was 2.29 and the Asset Liability Ratio at the same time was 3.64. Any ratio above 1.50 is good, so these ratios are very good.
The next thing to talk about is the Return on Equity or ROE. The ROE has been getting better and better on this stock. The 5 year average at the end of February 2009 was 27% and the current 5 year average to August 2009 is 26.2%. (The 5 year average at February 2006 was only 5%.)
Looking at revenues, earnings and cash flow, you can see that this company is making money. The one negative thing that I see is the Accrual Ratio and this is very high at 12%. Although, I must admit, this ratio has always been high. Tomorrow I will look at what the analysts say about this stock.
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. Its web site is www.rim.com. See my spreadsheet at www.spbrunner.com/stocks/rim.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Tuesday, November 10, 2009
Leon’s Furniture
I am reviewing this stock (TSX- LNF) today as I am looking at purchasing some more of this stock. This is the fall, and I like to buy stock in the fall. Usually, you can get some of the best deals on stock in the fall, as often there is a drop in the market at this time of the year. This will be a short entry as I just reviewed this stock in July of this year. I have updated my spreadsheet with the data from the June 2009 financial statements.
Looking at the growth figures on this stock and they are all good. What I want to talk about is the Graham Price. This is a price developed by Benjamin Graham. He is the author of one of the most famous investment books called “The Intelligent Investor”. Graham wrote the book in 1973 and it is considered to be a classic. The Graham Price is a formula that uses the earnings per share and the book value per share to determine a proper price to pay for a stock.
If you look at the spreadsheet, this stock’s price has seldom got near to the Graham Price. On average, over the last 10 years, this stock’s price has been over 20% higher than the Graham Price. Currently, it is under 2% over the Graham Price.
The other ratios of P/E and Price/Book Value are also good. The current P/E at around 12 is the same as the 5 year low P/E ratio. The Price/Book Value ratio is less than 80% of the 10 year average for this ratio. The yield at 2.9 is also above the 5 year average of 2.4%. The only think that I do not like is the Accrual Ratio is rather high at 5.6%.
Globe investor gives this stock a 3 star rating. It is a small cap stock and it is a consumer’s stock, so it is not a safe, but they often reward their shareholders with extra dividends when they can afford to. When I look at analysts recommendations, I find only a Hold recommendation. (See my site for information on analyst ratings.) However, I think this is a mistake. I know that earnings are down, but we are in a recession. I am a long term investor, so I am willing to buy and wait for this stock to recover.
When you look at Insider Buying and Insider Selling on this stock, I only find Insider Buying. There is not a lot of Insider Buying, but there has been some by the CEO and also by Directors. Leon’s is also buying back company shares to reduce the share outstanding.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Leon family owns 68% of this company. Its web site is www.leons.ca. See my spreadsheet at www.spbrunner.com/stocks/lnf.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Looking at the growth figures on this stock and they are all good. What I want to talk about is the Graham Price. This is a price developed by Benjamin Graham. He is the author of one of the most famous investment books called “The Intelligent Investor”. Graham wrote the book in 1973 and it is considered to be a classic. The Graham Price is a formula that uses the earnings per share and the book value per share to determine a proper price to pay for a stock.
If you look at the spreadsheet, this stock’s price has seldom got near to the Graham Price. On average, over the last 10 years, this stock’s price has been over 20% higher than the Graham Price. Currently, it is under 2% over the Graham Price.
The other ratios of P/E and Price/Book Value are also good. The current P/E at around 12 is the same as the 5 year low P/E ratio. The Price/Book Value ratio is less than 80% of the 10 year average for this ratio. The yield at 2.9 is also above the 5 year average of 2.4%. The only think that I do not like is the Accrual Ratio is rather high at 5.6%.
Globe investor gives this stock a 3 star rating. It is a small cap stock and it is a consumer’s stock, so it is not a safe, but they often reward their shareholders with extra dividends when they can afford to. When I look at analysts recommendations, I find only a Hold recommendation. (See my site for information on analyst ratings.) However, I think this is a mistake. I know that earnings are down, but we are in a recession. I am a long term investor, so I am willing to buy and wait for this stock to recover.
When you look at Insider Buying and Insider Selling on this stock, I only find Insider Buying. There is not a lot of Insider Buying, but there has been some by the CEO and also by Directors. Leon’s is also buying back company shares to reduce the share outstanding.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Leon family owns 68% of this company. Its web site is www.leons.ca. See my spreadsheet at www.spbrunner.com/stocks/lnf.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.
Subscribe to:
Posts (Atom)